Corn futures are narrowly mixed at midmorning.
- Corn futures are being limited by the surge in the U.S. dollar index to a two-year high.
- Geopolitical concerns in the Black Sea region are helping offset the surge in the U.S. dollar, which makes U.S. corn less competitive on the global market.
- Corn plantings in Argentina advanced a modest 0.8 percentage point over last week, according to the Buenos Aires Grain Exchange, as farmers prioritized soybean planting.
- December corn futures are finding support at the 10-day moving average of $4.27, though resistance at $4.30 1/2 continues to limit buyer interest.
Soybeans are narrowly mixed, as are soymeal futures. Soyoil is about 70 points lower.
- Soybean futures are choppy, with support stemming from meal strength, though continued selling in soyoil is curbing buyer interest.
- USDA reported daily soybean sales of 198,000 MT to unknown destinations for 2024-25.
- Argentina’s 2024-25 soybean planting advanced 16 points over the past week to 35.8% complete, according to the Buenos Aires Grain Exchange.
- As Brazil ramps up its biodiesel blending mandates, demand for soybean oil — of which used cooking oil (UCO) is a crucial component — has surged. This shift in focus toward meeting domestic biodiesel needs may lead to a reduction in the availability of UCO for export. The Brazilian government has also introduced measures that could further complicate the export landscape.
- January soybean futures are finding support at the Aug. low of $9.73 1/2, which is backed by $9.69 3/4. Initial resistance stands at $9.84 1/4.
Winter wheat futures are 4 to 6 cents lower, while HRS futures are 1 to 2 cents lower.
- Wheat futures are being limited by the surging U.S. dollar.
- Geopolitical concerns in the Black Sea region are helping offset the surge in the U.S. dollar, which makes U.S. wheat less competitive on the global market.
- France’s ag ministry rated the country’s winter wheat crop 88% good/excellent and 2% poor/very poor as of Nov. 18, unchanged from the previous week. Last year at this time, the crop was rated 83% good/excellent and 3% poor/very poor.
- Rain in eastern Ukraine Thursday was welcome and helped improve soil moisture for crop improvements in the spring. Restricted improvements are expected to soil moisture in Russia’s Southern Region in the coming ten days, according to World Weather Inc.
- March SRW futures are tesing support at the 10-day moving average of $5.65, while initial resistance stands at $5.71 3/4.
Live cattle and feeders are moderately to sharply higher at midmorning.
- Nearby live cattle are on support from technical buying and firming cash cattle expectations.
- Analysts expect this afternoon’s Cattle on Feed Report to show the large feedlot (1,000-plus head) inventory down 0.1% from year-ago at 11.944 million head as of Nov. 1. The report is expected to show a 3.8% increase in the number of cattle moved into feedlots last month, while marketings are anticipated to be up 5.2% from October 2023.
- After topping $37.00 earlier this week, the spread between Choice and Select wholesale beef prices has narrowed a little but remains wider than normal. Choice beef firmed 40 cents to $306.79 on Thursday, while Select rose $1.93 to $272.92, tightening the spread to $33.87.
- December live cattle pushed above resistance at the 40-day moving average of $186.30, while initial support lies at $185.50.
Hog futures are mostly firmer at midmorning.
- December hog futures are modestly weaker, with pressure stemming from cash and wholesale losses. Deferred contracts are mildly higher.
- The CME lean hog index is down another 39 cents to $87.44 as of Nov. 20, extending the recent price slide.
- The pork cutout value slid $1.53 to $93.07 on Thursday, led lower by primal picnics, bellies and hams. Movement was solid at 345.13 loads for the day.
- Brazil is close to finalizing protocols for exporting pork offal and fish to China, two people familiar with the matter told Reuters. The sources said negotiations for both protocols were advanced and should be completed soon, but declined to give a specific timeframe. A deal could impact exports of U.S. pork products, as China imports around half of all U.S. pork offal shipments.
- December lean hogs are pivoting around the 10-day moving average of $80.72 in narrow trade, with initial resistance at $80.875, while initial support lies at Thursday’s low of $80.275.